Profit source or public utility?

As of Thursday last week, toll road fees in Jakarta were increased by an average of Rp 500. Those urban toll roads were built and are operated by the private-sector company PT Citra Marga Nusphala Persada and the state-owned PT Jasa Marga.

Based on the principle that public roads are part of the public service provided by the government for the community, there is no reason for the government to entrust the building of toll roads to a private company. Private companies are obviously profit-oriented, something which does not conform to the government's duty to provide public utilities and infrastructure for the people.

As we see it, the problem is that if the government lacks the funds to build those toll roads, two basic questions may be asked: First: Why didn't the government seek to obtain loans from international financing institutions? This would prevent profit- oriented private companies from taking part in the provision of public utilities. Second: The funds required to pay for toll roads as public infrastructure should not become a burden for the people. The government could subsidize the private company in question if necessary to prevent fee increases because high tolls are a burden for the community and create a high-cost economy.

Why doesn't the government just take over the responsibility for operating those public facilities?

We can understand that it is perfectly natural for a private company to want to increase tolls to cover new investments. The question remains, however, as to why the government gave private companies the right to develop infrastructure in the first place. After all, isn't the provision of public utilities and infrastructure the government's responsibility?

-- Suara Pembaruan, Jakarta